HR Urged To Put More Emphasis on Reference Checking

The Society for Human Resource Management website, posted an article by summer intern Eric Reed, entitled "HR Urged To Put More Emphasis on Reference Checking" in which he regurgitates information from CEO and founder of the Mill Valley, California, performance management and assessment tools firm Checkster,Yves Lermusi's recent webcast:

“A reference check can be one of the best ways to gain insight on a candidate’s true performance,” Lermusi said during the webcast, titled “How to Turn Reference Checking into an Effective Assessment Tool.” Depending on when and how the reference check is handled, he said, “It can be used to help determine why an individual should be hired”—unlike background checks, which are “usually conducted to determine the reasons not to hire an individual.”

In fact, “when” and “how” to conduct reference checks are the two critical questions that employers must focus on to increase the importance and effectiveness of the process. Lermusi said that most companies typically conduct reference checks by phone, letter or e-mail near the end of the hiring process and focus on verifying work experience, which is one of the least accurate screening factors, according to recent research findings. These methods of obtaining the references also are the most time-consuming and costly of the options available to employers.

“Many companies confuse performance with experience,” he said. Human resource departments can supply relevant employment verification information, but HR often hasn’t worked directly with the candidate so it can’t supply relevant job performance information even if asked.

Reference checking is supposed to increase the quality of the hire, he said. But to achieve this, the process should begin earlier in the hiring process and automated to maximize time and cost savings.

“Best practice reference checks are more peer-review evaluations,” said Lermusi, noting that they incorporate diverse opinions from multiple sources that focus on the job performance of the candidate, as well as aspects such as teamwork or cooperation.

“It is way better to obtain collective feedback from more people who’ve worked with or know the candidate than it is to rely on one expert, like an immediate supervisor, to make a well-informed hiring decision about a job candidate,” Lermusi said.

But not all references are created equal, he added. The four most important criteria for selecting references are:
• Freshness of relationship.
• Length of relationship.
• Closeness of relationship.
• Nature of relationship.

Not all reference checking questions are of equal importance either, he said. “One critical question is, ‘Would you rehire (or advise to rehire) the individual?’ And follow up by asking, ‘If not, why?’”

So, as a common HR professional, you might think... maybe you could gain some "golden nugget" of information from our "professional organization" which might help you improve your reference checking process. But...NO, what you get is an infomerical for Mr.Lermusi's company. Can we sell out a little more????

And... Mr. Lermusi provides such a big revelation regarding reference checking. We all know that open and honest feedback from a former co-worker / employer is the best possible reference an organization can obtain.

However, what he fails to address or even acknowledge is the difficulty in obtaining that "open and honest feedback." He also doesn't address the legality surrounding the release of employment related information.

Beyond the task of checking references, HR professionals have a role to protect the organization from potential risks included but not limited to employment-related legal liability.

For what it's worth.... Politically Incorrect HR